If the principal P = $500, the interest I = $250, and the rate r = 10%, find the following.
(a) What is the time?
1 years
(b) What is the future value?
$ 2
I = Po*r*t = $250.
500*0.1t = 250.
S0lve for t
b. V = Po + I = 500 + 250 = $750.
To find the time, we can use the formula:
I = P * r * t
where I represents the interest, P represents the principal, r represents the interest rate, and t represents the time.
In this case, we have:
P = $500
I = $250
r = 10% (0.10)
Substituting these values into the formula, we have:
$250 = $500 * 0.10 * t
To find t, we can divide both sides of the equation by $500 * 0.10:
t = $250 / ($500 * 0.10)
t = $250 / $50
t = 5
Therefore, the time is 5 years.
To find the future value, we can use the formula:
FV = P + I
where FV represents the future value, P represents the principal, and I represents the interest.
In this case, we have:
P = $500
I = $250
Substituting these values into the formula, we have:
FV = $500 + $250
FV = $750
Therefore, the future value is $750.